· CPA Australia warns of complexity, uncertainty as reform Bill introduced
· Government’s decision to legislate first, consult later is concerning
· Accountants and financial advisers will be left to advise clients on a half-built tax system
Australia’s largest accounting body CPA Australia has warned the Government’s tax reform legislation risks creating a more complex and uncertain system, after the Treasury Laws Amendment Bill 2026 was introduced into Parliament today.
While the Bill delivers the core elements of the Federal Budget’s tax package – including changes to capital gains tax (CGT), negative gearing, the Working Australians Tax Offset and the proposed standard deduction – but leaves critical components unresolved.
CPA Australia Tax Lead Jenny Wong said the most structurally significant measure for private business and family wealth had been deferred.
“This Bill is consistent with the CGT and negative gearing changes announced in the Budget, however the proposed minimum tax on discretionary trusts – arguably the most consequential reform for private business owners – has been split into a separate Bill, leaving a major gap in the system,” Ms Wong said.
Ms Wong said the Government’s decision to introduce sweeping reforms before completing consultation was deeply concerning.
“We would encourage the Government to consult first and legislate later. Introducing significant tax changes into Parliament before properly engaging with affected stakeholders is not how tax reform should be done,” Ms Wong added.
Ms Wong said consultation is still ongoing on critical technical issues, including the treatment of capital gains for small and start-up businesses, interactions with managed investment trusts and tax consolidation.
“Despite these issues still being worked through with additional concerns raised by stakeholders, the legislation has been introduced. This leaves small businesses, investors and everyday Australians with material uncertainty about how these changes will apply to them,” Ms Wong said.
CPA Australia warned that implementing the changes in stages risks undermining investment confidence.
“We acknowledge this is the first tranche of legislation, with more to follow. But Australians cannot plan their financial futures based on half a tax system.
“Implementing reform in tranches creates a two-tier system – where some Australians know where they stand and others do not. That uncertainty has real consequences for investment decisions being made right now.”
Ms Wong rejected comparisons with past reforms such as the GST.
“The GST was the product of years of consultation, negotiation and public debate. This is fundamentally different – a Budget-night announcement followed by staged legislation, with key elements still unresolved,” Ms Wong added.
CPA Australia said the immediate impact of the negative gearing changes highlights the practical challenges of the legislation.
“Negative gearing was wound back on Budget night for investors buying established homes – but the Government hasn’t shared what counts as a ‘new residential dwelling.’ That definition will be written by the Minister, after the Bill passes. This creates avoidable uncertainty at a time when Australians are making significant, long-term financial decisions.”
Ms Wong said the reforms contradict the Government’s stated objective of simplifying the tax system.
“The Government has committed to making tax time simpler, but this package does the opposite,” she said.
“It introduces a new tax offset, a new instant deduction, a new inflation-based CGT framework, a minimum tax rate and revised negative gearing rules, each with different start dates, transitional arrangements and carve-outs.
“That is not simplification – it is layering new complexity onto an already complex tax system.”
Ms Wong said multiple start dates, grandfathering provisions and exemptions will make the tax package arguably one of the most complex in recent memory.
“Australians will need to navigate overlapping rules depending on when assets were acquired, how income is earned and how structures are set up,” Ms Wong said.
“Accountants and financial advisers will be left guiding clients through a system that is still being built, with further changes flagged but not yet legislated.”
CPA Australia is encouraging the Government to reconsider its approach and work more closely with industry.
“We urge the Government to work with us and other stakeholders to get this right. Tax changes of this scale deserve genuine engagement, proper consultation and a complete legislative package that gives Australian and the market the certainty they need. We look forward to consulting with the Government on the next stage of CGT changes.”
About CPA Australia
CPA Australia is Australia’s leading professional accounting body and one of the largest in the world. We have more than 176,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. A CPA is a Certified Practising Accountant. More at cpaaustralia.com.au